Amanze Chinonye
Kenya Power customers will pay more for electricity in September after the Energy and Petroleum Regulatory Authority (EPRA) imposed KSh4.1591 per kilowatt-hour in additional pass-through charges, increasing costs for households and businesses, Prime Business Africa reports.
A customer consuming 100 kWh during the month would incur about KSh416 in additional charges before the applicable base tariff, taxes and other levies. The impact will be larger for businesses and other high-volume users.
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EPRA gazetted the charges on Sept. 18, with the adjustment applying to meter readings taken during September and reflecting electricity-sector costs recorded in August.
The largest component is a KSh3 per kWh fuel energy charge, reflecting the cost of fuel used by thermal power generators. Electricity generation and purchases, excluding exports, totalled about 1.377 billion kWh in August, according to EPRA’s calculation.
A KSh1.1443 per kWh foreign-exchange adjustment accounts for most of the remaining increase. It reflects combined currency-related losses of about KSh1.316 billion incurred by Kenya Power, state-owned KenGen and independent power producers.
Independent power producers accounted for about KSh1.121 billion of the reported foreign-exchange loss.
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EPRA also imposed a KSh0.0148 per kWh water-resource levy on electricity purchased from qualifying hydropower plants. The calculation was based on about 339.4 million kWh of hydropower purchases in August.
The charges will increase the amount consumers pay for electricity in September, with the additional cost varying according to the volume of power consumed.
The adjustment highlights the exposure of Kenya’s electricity costs to fuel prices and foreign-exchange movements, particularly through the cost of thermal generation and payments to power producers.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
